Never been to an airshow that suffered a fatal accident but we've certainly had our share here in the UK....Farnborough springs immediately to mind:

http://www.youtube.com/watch?v=Uqnkn57Pf7M

Having been to Cleethorpes airshow today I think the future of airshows is along the seafront lines, such as Sunderland, Southend, etc.,

All the military need to do is send a couple of people to represent their respective units (give kids and pretty women zaps! I know, I've done it.) . Get the aircraft airborne and recovered - small additional cost for this but very little in comparison to full show. No need for months and months of planning, no manpower issues, no security issues or costs, no local emergency services to pay for... Joe Public still gets to see the aircraft flying, just no static line up.

This, unfortunately, is the future, at least in the UK. The benefits are they're usually free to attend, downside is no close-up stuff, and they become a benign same-old same-old the length and breadth of the country.

Agreed, nothing beats seeing em in flight....apart from (possibly) being up close and personal in a static line-up.